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Informist, Thursday, Jul 18, 2024

 

NEW DELHI – India should aim to achieve electronics manufacturing worth $500 bln by 2029-30 (Apr-Mar), from $101 bln in 2022-23, thanks to a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, NITI Aayog has said in a report.

 

The electronics production target of $500 bln comprises $350 bln from finished goods manufacturing and $150 bln from manufacture of components. "Such growth is projected to create employment for an estimated 5.5 mln to 6 mln people, significantly boosting job opportunities across the country," the think tank said in its "Electronics: Powering India’s Participation in Global Value Chains" report.

 

Electronics exports are expected to reach $240 bln and domestic value addition is seen rising to more than 35%, it said.

 

Of the $101 bln worth of electronics production in 2022-23, $86 bln was in finished goods production and $15 bln in components manufacturing. During the same period, electronics exports were around $25 bln. Electronics production has contributed domestic value addition between 15% and 18%, and has generated approximately 1.3 mln jobs, the report said.

 

In a 'Business As Usual' scenario, India's electronics manufacturing could rise to $278 bln by the end of this decade with employment generation of around 3.4 mln. "However, India's ambition to become the third-largest global economy necessitates a more ambitious vision for its technology-driven sectors," the report said.

 

The aim of $500 bln of electronics manufacturing needs scaling up production in established segments such as mobile phones and establishing a foothold in component manufacturing, the report said. There should also be a strong focus on diversifying into emerging areas such as wearables, Internet of Things devices, and automotive electronics, it said. "This strategic diversification will capitalise on evolving consumer demands and technological advancements, positioning India as a leader in innovative electronic products on the global stage."

 

The report recommended strategic interventions across fiscal, financial, regulatory, and infrastructure domains to support the growth trajectory for electronics production. These included promoting components and capital goods manufacturing, incentivising research and development and design, tariff rationalisation, skilling initiatives, facilitation of technology transfers, and infrastructure development to foster a robust electronics manufacturing ecosystem in India, the report said.  End

 

US$1 = 83.65 rupees

 

Reported by Shubham Rana

Edited by Rajeev Pai

 

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